SEC To Probe Executive "Safe Harbor" Trading Plan

Law360, New York (March 9, 2007, 12:00 AM EST) -- The Securities and Exchange Commission is investigating whether executives are taking advantage of a legal safe harbor and using a predetermined trading plan while selling stocks on insider news.

SEC Enforcement Director Linda Thomsen said on Thursday that a recent Stanford University study showed that executives who traded under preset trading plans performed almost 6% better than executives who did not use such plans.

“It raises the possibility that these plans are being abused,” Thomsen said at an annual symposium for the Corporate Counsel Institute at...
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